Individual Retirement Accounts (IRAs)
A wise choice and great addition to any retirement saving strategy. Whether opening a new IRA, or rolling over from another plan, FMFCU has a retirement account that will fit your needs.
IRA Accounts Feature:
- No set-up fees
- $5 minimum to open
- Annual fee waived with minimum $500 balance as of December 31
- Convenient deposits through payroll deduction and Online Banking
- IRA Certificates with terms from 3 months to 5 years
- Variable rate IRAs with no term
- Competitive rates
- IRAs are insured up to $250,000 by the National Credit Union Administration (NCUA)
- Available as a Bump Certificate product
Are you retiring soon? We can help provide guidance. Read more.
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Traditional IRAs
- Contributions are tax-deductible for many taxpayers.
- Earnings are tax-deferred until they are distributed.
- Withdrawals are taxed as income.
IRAs are one of the best retirement savings tools available today because of the federal tax benefits available on contributions, withdrawals, and earnings. As an IRA grows, these tax advantages can result in significantly larger savings than what can be accumulated in an ordinary savings tool. More people than ever are benefitting from the tax advantages available through IRAs.
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Roth IRAs
- Contributions are not tax-deductible.
- Earnings grow tax-deferred.
- Withdrawals are tax-free when all requirements have been met.
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Coverdell Education Savings Accounts
- Tax-free earnings
- $2,000 annual contribution limit per child
- Penalty-free withdrawals for qualified education expenses
- Variable rate accounts with low minimum balance requirements
- Certificates with terms from 3 months to 5 years
- Distributions are tax-free if used to pay for the account beneficiary’s qualified expenses for costs of kindergarten through 12th grade, college or trade school.
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IRA Information for 2023
- The IRA contribution limit for 2023 is $6,500; $7,500 if you are 50 or older.
- Online Banking contributions are always recorded as Current Year.
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SECURE Act Information
For all who have an IRA, will have an IRA, or may inherit another person’s IRA, the SECURE act has the following impact:
Traditional IRA:
- No required distributions until age 73, if born in 1951 or after.
- No age limit to contribute to traditional IRA (earned income is still a requirement).
Roth IRA:
- No change, except to inherited Roth IRA (see below).
Inherited IRA:
- IRAs inherited prior to 2020 are not affected by the SECURE Act.
- Non-spouse beneficiaries (with a few exceptions) will have to take distribution of all account assets by the end of the 10th year following the death of the owner.